ASHEVILLE, N.C. (828newsNOW) — Residents urged city leaders Tuesday night to rethink priorities and protect essential services as Asheville officials outlined a projected $30 million budget shortfall for the 2026-27 fiscal year.

The comments came during the first public hearing in the city’s annual budget process, where staff warned that recurring expenses are outpacing recurring revenues and that a mix of spending cuts and revenue increases — including possible property tax hikes — will be needed to balance the budget.

City budget officials said roughly half of Asheville’s general fund revenue comes from property taxes and about 23 percent from sales taxes. On the spending side, about 64 percent of the budget goes toward personnel costs, including salaries, overtime and benefits.

Several residents pushed back on the idea that property tax increases should again be part of the solution.

“Why is it the first fix for anything when it comes to the budget?” asked Paul Howell, who cited multiple recent years in which the city raised property taxes. “The people can’t keep taking the tax. Find other solutions.”

Others framed the issue as more than a temporary imbalance.

“Asheville is not facing a temporary budget gap,” said Kyle Turner, of West Asheville. “We’re facing a structural deficit where recurring expenses outpace recurring revenues. That distinction matters because you fix a gap with a patch. You fix a structural deficit with a structural reform.”

Calls to protect transit, sustainability

Multiple speakers urged council members to maintain or increase funding for transit services and environmental sustainability efforts despite the projected deficit.

Rachel Cohen, speaking on behalf of Sunrise Movement WNC, said public transportation is essential infrastructure for working residents.

“It’s how people get to work, it’s how they get to doctor’s appointments, it’s how they get to the grocery store,” she said. “When we talk about what’s essential or not essential, we believe that transit is essential.”

Cohen also argued that the city should consider dipping further into its fund balance reserves in light of revenue losses following Tropical Storm Helene, describing the situation as an emergency.

Vicky Meath of Just Economics echoed support for transit and called on the city to recommit to paying all municipal employees a living wage. She said the 2026 living wage for Buncombe County is $24.10 per hour.

“Budgets demonstrate values,” Meath said. “We want to encourage that progress and continue to get there.”

Nina Tovish similarly urged council to protect low-income residents, seniors and children when weighing potential tax increases. She encouraged city leaders to consider ways to automatically enroll eligible homeowners in property tax relief programs rather than relying on burdensome application processes.

Questions about spending, staffing and surveillance

Other speakers focused on spending levels and city staffing.

David Moritz said the city’s budget has grown significantly over the past five years, while population growth has remained relatively flat.

“We need to ask the question of what kind of government we want,” Moritz said, urging leaders to avoid expanding staff if revenues cannot sustain it.

Another resident criticized expenditures on police technology such as Flock license plate reader cameras and the city’s drone program, arguing that funds could be redirected to other needs.

“We are spending money surveilling our citizens instead of addressing problems,” he said.

What comes next

City staff said the proposed budget will be presented in May, followed by another public hearing before council adoption in June. The new fiscal year begins July 1.

Officials emphasized that the current fiscal year budget is balanced, but said one-time measures used previously cannot be relied upon again, contributing to the projected shortfall.

As the process moves forward, council members will weigh potential service reductions, fee increases and property tax adjustments — decisions that residents made clear Tuesday will draw close scrutiny.

“This is a challenge every year,” Meath said. “But even in difficult times, we need to remember our values.”